Business · Economy · 4 hrs ago
French economic growth forecast at 0.5% in 2027
The French Institute of Economics forecasts growth of 0.5% in 2027, after predicting 0.4% for 2026.
The institute says energy prices, tighter budgets, higher interest rates and political uncertainty are weighing on the economy.
Without those pressures, it estimates growth could reach 1.4% in both years.
Foreign trade is expected to be the main source of growth, while domestic activity is largely stalled.
Consumers are expected to face a 0.1% fall in purchasing power, and inflation is forecast at 2.2% in 2026 and 1.9% in 2027.
Unemployment is forecast to rise to 8.8% in 2027, from 8.0% at the end of 2025.
Higher borrowing costs are also expected to hold back business investment.
France’s economy is forecast to grow by 0.5% in 2027, according to the French Institute of Economics.
The institute said the forecast reflects the combined effects of energy prices, budget tightening, monetary tightening and political uncertainty.
Growth is forecast at 0.4% in 2026, with foreign trade expected to be its main driver.
The institute expects inflation to ease from 2.2% in 2026 to 1.9% in 2027.
Unemployment is forecast to rise to 8.8% in 2027, from 8.0% at the end of 2025.
- Who
- The French Institute of Economics issued the forecast.
- What
- It forecast French economic growth of 0.5% in 2027.
- When
- The forecast was published on 14 October 2026.
- Where
- France.
- Why
- The institute cited the combined effects of energy prices, budget tightening, monetary tightening and political uncertainty.
This story does not have two clearly opposing sides.
The French Institute of Economics was created through the merger of two research organizations.
The institute published forecasts of 0.4% growth in 2026 and 0.5% in 2027.
- 2027 growth forecast
- 0.5%
- 2026 growth forecast
- 0.4%
- Inflation forecast for 2026
- 2.2%
- Inflation forecast for 2027
- 1.9%
- Unemployment forecast for 2027
- 8.8%
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What people are saying
All the other domestic drivers are virtually at a standstill